Virtual Credit Cards for Canadian Businesses

Virtual credit cards can help Canadian businesses pay for software, advertising, travel and other expenses without relying on a physical card.

Depending on the provider, businesses may also be able to create separate cards for employees or purchases and set spending controls that make expenses easier to manage.

KOHO Virtual Card

Get Your Virtual Card: Instant Approval, Secure, Convenient

With KOHO Virtual Card, you can:

• Works with Apple, Samsung, or Google Pay

• Use it in-store and online

• No physical card needed

• Up to 2% Cash Back on groceries, transportation, food & drink

What Is a Virtual Credit Card?

A virtual credit card is a digital card that can be used without carrying a physical card.

It typically has:

• A card number

• An expiry date

• A security code

Depending on the issuer, a virtual card may be connected to a credit account, prepaid balance or business spending account.

How Can Businesses Use Virtual Cards?

Businesses can use virtual cards for many of the same expenses they would normally put on a corporate card.

Common examples include:

• Software subscriptions

• Digital advertising

• Cloud services

• Office supplies

• Travel bookings

• Vendor payments

• Employee expenses

Virtual cards can be particularly useful for businesses that make most of their purchases online.

Why Are Virtual Cards Useful for Business Expenses?

One of the biggest advantages is control.

Business virtual card programs may allow administrators to set restrictions for individual cards. Visa's commercial card tools, for example, can support controls based on employees or types of purchases.

This can help a company avoid giving every employee access to the same physical company card.

Can You Create Separate Virtual Cards for Employees?

Some business card providers allow companies to issue virtual cards to individual employees.

A business may be able to set:

• Spending limits

• Approved purchase categories

• Card expiration dates

• Employee-specific cards

• Transaction controls

This can make it easier to determine who made a purchase and which department should be charged for it.

Can Virtual Cards Help Manage Subscriptions?

Yes.

A business can potentially use different virtual cards for different services.

For example, you might use separate cards for:

• Google Ads

• Meta Ads

• Shopify

• Accounting software

• Project management software

Separating recurring expenses can make it easier to identify charges and manage subscriptions.

If one card needs to be replaced or cancelled, other business payments may be able to continue without interruption.

Are Virtual Cards Safer Than Physical Cards?

Virtual cards can reduce some risks because there is no physical card to lose or have stolen.

Some business virtual card systems also offer single use numbers or controls over the amount and period in which a card can be used. Visa notes that these controls can help businesses manage spending, reduce fraud risk and simplify reconciliation.

Virtual cards are still payment credentials, so businesses should continue protecting account access and monitoring transactions.

Can Virtual Cards Make Expense Tracking Easier?

They can.

Separating cards by employee, vendor or expense category can make transactions easier to identify.

Some commercial card systems also provide:

• Transaction categorization

• Real-time alerts

• Receipt management

• Accounting integrations

• Spending reports

These features can reduce the amount of manual work involved in reconciling company expenses.

Virtual Card vs. Physical Business Card

A virtual card is generally better suited to:

• Online purchases

• Software subscriptions

• Remote employees

• Digital advertising

• Vendor payments

A physical business card may be more useful for:

• In-person purchases

• Business travel

• Merchants that do not accept mobile wallets

• Situations where a physical card is required

Many businesses may benefit from using both.

Are Virtual Credit Cards Available in Canada?

Yes.

Canadian financial institutions and commercial payment providers offer virtual card solutions for businesses. Features can differ considerably between providers, particularly when it comes to employee cards, spending controls, accounting integrations and credit requirements.

Before choosing one, compare:

• Monthly or annual fees

• Foreign transaction fees

• Employee card controls

• Spending limits

• Rewards

• Accounting integrations

• Card network acceptance

• Whether the card is credit, debit or prepaid

Are Virtual Cards Good for Small Businesses?

They can be especially useful for businesses with recurring online expenses or several people making purchases.

Instead of sharing one company card number, a business may be able to separate spending across different virtual cards and track each expense more clearly.

Businesses with frequent subscriptions, online purchases and employee expenses may benefit most from cards that combine easy digital payments with strong spending controls and reporting.